Economic Environment of Indian Business Sector
Business is the
crucial sector of the economy. It shares a huge part of the pie. Economic
environment creates a framework for the organizations to operate. The economic
environment facilitates a smooth working area to business. Business environment
indispensable part of the economy, though it's proper implementation economy
attain the majority of GDP growth and National Income and other concerned
milestones.
The Analyses of Indian Economy
The economic environment of India is framed of major macro levels decisions. Being a Mixed economy India serves facilities to both Public and private sector as well. They are majorly related to the production and distribution of wealth, which decision ultimately impacts the working of the business sector of the economy. Business has the responsibility to cater economy in such a way so, it could reach the goals in the global market. Similarly, the economy has a liability to provide an efficient working environment for the desired output.
The contents of Indian Economic Environment:
- The major
economic policies which include monetary, fiscal and industrial policies.
- Economic
planning is also part of the economic environment which involves Five-year
plans, Annual Budgets, Plans for MSME's, Made in India and so on.
- Providing
opportunities to public and private sectors to grow significantly by
following mixed economic structure.
- Accessing
Infrastructural, Transportation and Communication facilities to ensure the
growth of the economic environment.
- Economic Environment essentials are National Income, growth of GDP, Per Capita Income rise in Personal Income, rise in net Disposable Income, Increasing of exports over imports, rise in Forex, Rate of savings and investments, Balance of Payment and many more.
The Economic
Reform and Economic Environment
Economic reforms
introduced By Government of India in 1991 July. The Iconic decision brought
millions of change to each and every sector of Indian Economy. Here, the
Government of India comes with a new industrial policy in 1991. The reforms
were as follows:
- Government
liberalised the rules for foreign capital. The share of foreign capital
was increased and even 100 per cent FDI ( Foreign Direct Investment)
approved.
- LPG policy
brought an invasion of technology in the Indian economy with foreign entry
in the Indian market.
- Disinvestment
initiated by Indian economy in public sectors by Government of India.
- Public sector
kept reserved to under full control of Govt. of India
- Government of
India reduced the number of industries under compulsory licensing to six.
- Foreign
Investment Promotion Board set up to promote and invite foreign investment
ion Indian economy.
(LPG)
industrial policy was introduced to give wing of expansion to the Indian
Economy. Moreover, Government took every step to reduce the hurdles for foreign
business to employ their funds in Indian Economy. Liberal rules and private
sectors gave a kickstart to the GDP of the Indian Economy.
LPG The essence of Industrial Policy
The three pillars of development LPG Introduced in industrial policy 1991 i.e, Liberalisation, Privatisation, Globalisation
Liberalisation
Economic reforms made the rules and entry of the foreign firm in the Indian economy. Indian economy came up with the liberal policy to enter any enterprises easily. All the unnecessary restriction and controls removed. The end of licence permit quota raj introduced. Reduction of taxes, freedom of fixing prices of goods and services, simplified procedures, flexible rules attracted FDI.
Privatisation
Government started disinvesting public sector for FDI to invest in them. Which revived sick units of Indian economy and uplifted the economy. Many important sectors of economy transferred to private. Privatisation brought better customers service and upgraded product and services. Privatisation introduced a standard of living among Indian Economy.
Globalization
Globalization brings
the world to your doorstep. Globalizing Indian market was the best decision
took by in Industrial Policy 1991. It introduced the Indian economy to the
world and vice versa. Technological advancements, quality goods, high-end services,
foreign exchange, imports and exports gave a boost to GDP. In such a way India
attained a reputation in Global market.
Although, this globalization is also seeking negative impacts now in 2020. Indian economy is creating an image of dependent on the global market for product and services. The revolution of Make in India is seeking rise to reduce the dependency on the foreign market.
Importance of
economic environment
Indian Government
values the importance of the economic environment. In the same way, Business
tends to transparent the working process and output. Annual audits and reports
to be made public and declare their share of profit to the economy. Almost, all
annual company reports presented by the CEO of the Business sneaks the attention
of economic environment.
Economic environment
emphasis on the overall development of the economy along with the upliftment of
business enterprises. The framework of operation standardized the level of
every sector of the economy. From lower-level employee to BOD of an organization
gets involved in this framework. The economic environment process normal
keeping in minds all sectors of fields.
The economic
environment is the skeleton support of Business enterprises of the Indian
economy. The economic environment provides operational support and delegates
with the required facilities to business organisations.
It facilitates the
free flow of goods and services along the national and international borders.
It introduces the very fine and super-fast technology. The overall development
of an economy relies on the economic environment provided by the nation.
What Is your perception of the economic environment?
Very nice sister. How do you get these all these information!!
ReplyDeleteNice explanation. Please continue writing!!
Thanks...
DeleteI gain this knowledge by reading and gathering from various books and bulletins.
If you have in Interest in these books, I am happy to suggest you the book ' India Unbound' by Sir Gurucharan Dhas. It has all the economic strategies from 1947. Have a nice day!!
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Hi sis what happened? Visiting your blog after a long time surprised me! You are not writing anything?
ReplyDeleteI'll be back to writing soon. For now I'm working on a book. Will let you know asap.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteWorking on a book! That's great ! Eager to know about it. Good luck!
ReplyDeleteInformative
ReplyDelete